Question
how to make valuation basis on this ratios Liquidity ratio Formula 2019 2018 Current Ratio current Assets/current liabilities $29,504/$28,264 =1.04 $35,563/$29,607 =1.20 Quick test ratio
how to make valuation basis on this ratios
Liquidity ratio | Formula | 2019 | 2018 |
Current Ratio | current Assets/current liabilities | $29,504/$28,264 =1.04 | $35,563/$29,607 =1.20 |
Quick test ratio | current -Inventory/ Current Liabilities | ($29,504-$5,982)/$28,264 =$23,522/$28,264 =0.832 | ($35,563-$6,956)/$29,607 =$28,607/$29,607 =0.966 |
ASSET MANAGEMENT RATIO | |||
Inventory Turnover Ratio | sales / inventory | $47,498/$5,982 =7.94 | $44,833/$6,956 =6.44 |
Days Sales outstanding | 365 Account Receivable/ Sales | 365$8301/$47,498 63.78days | 365$8,727/$44,833 =71.04days |
Total Assets Turnover | sales / total Assets | $47,498/$118,370 =0.401 | $44,833$145,563 =0.307 |
Fixed Assets Turnover | sales / fixed Assets | $47,498/$88,866 =0.534 | $44,833/$110,000 =0.407 |
DEBT RATIO | |||
ROA | net Income/total Assets | $11,737/$118,370100 =9.91% | $12,614/$145,563100 =8.66% |
ROE | net income/ owners equity | $11,737/$55,551100 =21.128% | $12,614/$78,692100 =16.029% |
PROFITABILITY RATIO | |||
Gross profit Margin | gross profit/sales 100 | $34,252/$47,498100 72.11% | $31,589/$44,833100 =70.45% |
EBITDA MARGIN | EBITDA/Sales | $9,086/$47,498100 =19.129% | $8,403/$44,833100 =18.742% |
Pre tax Profit margin | profit before tax / sales 100 | $8,940/$4,7498100 =18.82% | $14,095/44833100 =31.432% |
Net profit margin | net Income/ sales 100 | $11,737/$47,498100 =24,71% | 12,614/$44,833 100 =28.13%v |
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